What is a characteristic of personal contracts?

A characteristic of personal contracts is that they are specific to the individuals involved, particularly in the context of insurance contracts. This means that the rights and obligations of each party are closely tied to their individual circumstances and identities. In insurance, for example, a personal contract typically cannot be transferred to another party without the consent of the insurer, as it is based on the trust and understanding established between the insured and the insurer.

This specificity is important because it means that the terms of the contract are designed to address the unique risks and needs of the particular insured party. In personal contracts, the personal nature of the risk affects the type of coverage available and the obligations of the insurer. As a result, the relationship and agreement between the two parties play a critical role in the enforcement and execution of the contract.

This focus on individual circumstances is what distinguishes personal contracts from other types of agreements, such as those that can be easily assigned or transferred, which is not usually the case in personal contracts.